Rumours suggest that Nintendo have decided to pull of a sequel to Eternal Darkness following Silicon Knights’ legal battle with Epic Games.

Last week, Silicon Knights were hit with $4.45 million in damages after a failed lawsuit involving Epic’s Unreal Engine 3.

According to NeoGAF user Shiggy, SKs’ troubles have caused Nintendo to pull out of an Eternal Darkness sequel that was in development.

“When Nintendo saw that they would need to pay an additional 10 million USD to have the company survive that develops the game, they didn’t seem to like it, especially as they wouldn’t get anything in return.”

“NCL reviewed its decision and it appears as if Eternal Darkness 2 is cancelled for now.”

Eternal Darkness: Sanity’s Requiem released in 2002 on Nintendo GameCube.

Thanks to GamesOnNet.